Knowles Corp
NYSE:KN
Knowles Corp
In the dynamic world of acoustics and specialized electronic components, Knowles Corporation stands as a pivotal player, leveraging innovation to carve its niche. Established with a focus on precision engineering and quality, the company excels in producing micro-acoustic microphones, speakers, and hearing aid components, which serve as integral parts of consumer electronics and hearing health industries. At the heart of its operations lies a robust manufacturing and design capability, spreading across multiple continents, ensuring a global footprint that meets diverse market demands. Knowles harnesses cutting-edge technology to deliver superior sound quality, fulfilling the consumer's ever-increasing expectations for smaller and more efficient devices.
The company's revenue model is intricately linked to its key segments: Audio and Precision Devices. In the Audio division, Knowles provides micro-acoustic solutions that are utilized in various devices, including smartphones, tablets, and hearing aids. Such applications require high-performance acoustic solutions, creating substantial demand for Knowles' products. On the other hand, the Precision Devices division caters to industries needing sophisticated capacitors and radio frequency components, vital for telecommunications and defense applications. By continually adapting to technological advancements and consumer trends, Knowles ensures a steady stream of income, aligning its innovation with the needs of the rapidly evolving electronics landscape.
In the dynamic world of acoustics and specialized electronic components, Knowles Corporation stands as a pivotal player, leveraging innovation to carve its niche. Established with a focus on precision engineering and quality, the company excels in producing micro-acoustic microphones, speakers, and hearing aid components, which serve as integral parts of consumer electronics and hearing health industries. At the heart of its operations lies a robust manufacturing and design capability, spreading across multiple continents, ensuring a global footprint that meets diverse market demands. Knowles harnesses cutting-edge technology to deliver superior sound quality, fulfilling the consumer's ever-increasing expectations for smaller and more efficient devices.
The company's revenue model is intricately linked to its key segments: Audio and Precision Devices. In the Audio division, Knowles provides micro-acoustic solutions that are utilized in various devices, including smartphones, tablets, and hearing aids. Such applications require high-performance acoustic solutions, creating substantial demand for Knowles' products. On the other hand, the Precision Devices division caters to industries needing sophisticated capacitors and radio frequency components, vital for telecommunications and defense applications. By continually adapting to technological advancements and consumer trends, Knowles ensures a steady stream of income, aligning its innovation with the needs of the rapidly evolving electronics landscape.
Revenue Growth: Knowles posted Q4 revenue of $162 million, up 14% year-over-year and above the high end of guidance; full-year revenue reached $593 million, up 7% and exceeding targets.
Earnings Beat: Q4 EPS was $0.36, rising 33% from the prior year and above guidance; full-year EPS of $1.11, up 21%.
Cash Flow Strength: Q4 cash from operations was $47 million, surpassing guidance; full-year cash from operations was $114 million, 19.2% of revenue.
Segment Performance: Both MedTech & Specialty Audio and Precision Devices segments met or beat growth targets, with Precision Devices up 23% in Q4 and 10% for the year.
2026 Outlook: Q1 2026 revenue guided to $143–$153 million (up 12% YoY at midpoint) and EPS of $0.22–$0.26 (up 33% YoY at midpoint). Strong backlog and momentum expected to support further growth.
Energy Order & Capacity: Specialty film line ramping, with $25 million+ energy order expected to ramp fully by end of Q2 and broader customer base emerging.
Margin Expansion: Gross margin held steady in 2025; management expects potential expansion of 50–75 bps in 2026, weighted to the back half.
